Popeyes Louisiana Kitchen Shares Surge On Earnings Beat

Popeyes Louisiana Kitchen Inc PLKI reported better-than-expected earnings for the third quarter and raised its full-year earnings guidance. The Atlanta, Georgia-based company posted quarterly net income of $10.6 million, or $0.46 per share, up from $9.8 million, or $0.42 per share, in the year-ago period. Its earnings, excluding items, came in at $0.47 per share. Its revenue surged 11.3 percent year-over-year to $61.1 million. However, analysts were expecting a profit of $0.45 per share on revenue of $62 million. Same-store sales increased 6 percent for the quarter. Total domestic same-store sales climbed 5.6 percent, while international same-store sales surged 9.1 percent. Company-operated restaurant operating profit climbed to $4.9 million from $4.4 million. "We are pleased to report another quarter of strong sales and earnings. Our combination of innovative menu offerings, media, and messaging delivered global same-store sales of 6.0% and continued market share gains. Going forward, increasing cash flows give us the opportunity to invest in key organic growth strategies, including people initiatives, technology and international expansion. We believe the execution of these strategies will help ensure strong, sustainable financial performance for all of our stakeholders," said Cheryl Bachelder, Popeyes Chief Executive Officer. Popeyes projects full-year adjusted earnings of $1.86 to $1.91 per share, versus its earlier outlook of $1.85 to $1.90 per share. The company now expects full-year same-store sales to rise 5 percent to 5.5 percent, versus prior forecast for growth of 4.5 percent to 5.5 percent. During the quarter, Popeyes Louisiana Kitchen repurchased 339,573 shares of its common stock for around $19.0 million. The company's board also announced a $200 million buyback plan. Popeyes Louisiana Kitchen shares gained 5.57 percent to $54.00 in the after-hours trading session.